Spanish airline Air Comet said on today it had suspended all its flights because of financial difficulties that are preventing it from paying its debts, ruining travel plans for thousands of passengers.

Air Comet, which specialises in flights to Latin America, attributed its problems to a decision on Friday by a commercial court in London that enabled Nord Bank of Germany to undertake a foreclosure procedure against the airline.

The airline said the court decision meant that the carrier was unable to operate its aircraft. The decision has also forced the airline to prepare staff lay-offs and to declare itself unable to meet its financial obligations, the company said.